The World Bank is raising its forecast for global economic growth in 2023, mainly thanks to better-than-expected growth in major economies such as the United States, the eurozone and China. However, the forecast for next year was lowered.
For this year, the institute from Washington now expects a plus of 2.1 percent. In January, that was still a forecast of 1.7 percent growth. In 2022, the global economy grew by 3.1 percent.
The World Bank raised its forecast for the US economy for 2023 to 1.1 percent from a previously predicted 0.5 percent. China, the world’s second-largest economy, should now grow by 5.6 percent instead of a previously expected 4.3 percent. For the eurozone, it is now a plus of 0.4 percent. Stagnation was anticipated here.
For 2024, however, the World Bank expects growth to reach 2.4 percent. That was still 2.7 percent in January. The organization says delayed effects of central bank interest rate hikes against high inflation will continue to create headwinds, as will tighter lending conditions. The World Bank also warns of negative consequences due to unrest in the banking sector.
